§ Mr. Blakerasked the Minister of Pensions and National Insurance how many retirement pensioners she estimates will be affected by the earnings rule in the current year.
§ Mr. PentlandInformation is not available in precisely the form requested but it is estimated that about 1¼ million pensioners are at present within the scope of the earnings rule and that at any point in time about 20,000 have their pensions reduced or extinguished on account of earnings. These figures take no account of some 400,000 people over minimum pensionable age who are not drawing their pensions because they have deferred their retirement and are earning pension increments.
§ Mr. Blakerasked the Minister of Pensions and National Insurance what is the estimated yield of the earnings rule for retirement pensioners for the current year.
§ Mr. PentlandThe estimated saving is about £2 million a year. But I would remind the hon. Gentleman that the total immediate cost of abolishing the earnings rule and the retirement condition which goes with it would be about £120 million a year.
§ Mr. Blakerasked the Minister of Pensions and National Insurance what is 91W her estimate of the reductions in the staff of her Department and of its local offices which could be made if the earnings rule for retirement pensioners were abolished.
§ Mr. PentlandThe administration of the earnings rule employs the equivalent of some fifty staff throughout the Ministry but it is not possible to say what the effect might be if the rule were abolished, because of the other major changes this would involve, including paying some 400,000 additional pensions to people who have not retired.
§ Mr. Blakerasked the Minister of Pensions and National Insurance what is the estimated annual cost of administering the earnings rule for retirement pensioners.
§ Mr. PentlandThe annual cost of administering the earnings rule for retirement pensioners is estimated to be about £90,000, including on-costs.